dre11:








http://thenationonlineng.net/petrol-subsidy-back-fg-dilemma-keep-paying-difference/

omenkaLives:
Thee panecea to this prerenial headache of subsidy is simply an aggressive push towards 100% local refining as this would not only create hundreds of thousands of jobs but would also save us scarce forex.

I wonder why successive governments, including this government, make achieving this noble and simplistic goal seem like rocket science.

What a pathetic situation.

maynation:
Cc Lordofnairaland


Your fellow crooks at it again

LordAdam7:


Because it is rocket science.

The Nigerian populace does not want to hear the word privatization.

That's why after OBJ sold the refineries, Yaradua reversed the deal. And GEJ after the subsidy protest taught it wise to leave another controversial sale because he was already getting heat for the PHCN sale.

The fact is that as long as the refineries remain under the government, they wouldn't function optimally. The refineries are a cash cow of very powerful interests, and the only thing Nigerians can really do is sell them of and stop wasting billions of naira on them every year for repairs.

But Nigerians are too emotional and clearly lack the ability to analyze issues constructively.

With this quagmire, there is no government that'd be able to fully optimize refining at the government-owned refineries. Not OBJ, not Yaradua, not GEJ, not Buhari, not Osinbajo...

The plan now is to keep paying marginal subsidy while we all wait for people like Dangote to finish building their private refineries. That was the plan under GEJ, it's still the plan under Buhari. The solution to Nigeria's dilapidated refining capacity is large private refineries.

The masses don't want to accept that, so the government keeps tip-toeing on issues concerning refinery repairs, pushing deadlines, making mouth-watering unrealistic promises, while still creating an avenue to loot.

-Lord

paschu:
JUST LISTEN TO YOURSELF.
What again was your position in 2012? GROSS OPPOSITION TO TOTAL DEREGULATION! Why? Because of herds-mentality driven by reckless media SPECULATION. But 5 years later, here you are talking gebrish and clamoring for what you demonized 5 whole years ago.! Talk of dumbness.

Well, FYI it WAS way cheaper to import refined fuel than it was to build and maintain a bunch of semi-eco-friendly refineries. Though, given the current FX rates, I doubt if the earlier assertion is still true today.

But even if it is, no smart enterpreneur will be in a hury to invest billions into an industry where the govt. regulates pump price. So as long as you want subsidy/price regulation, you'd keep having jobs exported to Asia and elswhere.

Either eat your humble pie, repent and approve what you demonized in 2012, or your hypocricy will keep hunting you.

laudate:


Total deregulation in an economy, where transport infrastructure is substandard, citizens welfare has no safety net, and power supply is epileptic, is tantamount to handing over the reins of such an economy to the kind of inflation which only leads to economic suicide. How do you manage the aftermath of such total deregulation? Someone should give us a blueprint on how that would be done first, before talking about implementing total deregulation. If we had an efficient inter-city and intra-city rail system, and an efficient electricity supply network, then by all means - go ahead and deregulate. But kindly remember that Dangote did not wait for the govt to deregulate, before he started building his own refinery, without collecting a dime from local banks or the CBN.

A lot of those who got licences to build refineries under OBJ, simply sat on them thinking they could hawk such documents and make money from potential investors, without realising that it is a different ball game.

Anyone who builds his refinery today, can sell his refined products to any country along the West African coast and beyond. They do not have to wait for deregulation. All they need is a steady supply of crude.

paschu:
There we go again....

SPECULATION, SPECULATION, SPECULATION

Back in 2012, at total deragulation (plus high crude price and low exchange rate) you'd have been buying fuel at N142 max. And by now, govt. would have banned fuel importation or alternatively they'd have made it more expensive than local production which would have forced invedtors to rush into local refinery business.

With that, the demand for forex would have crashed, thousands of permanent jobs would be created, competition would have futher crashed the pump price grossly. And Probably Nigeria by now would have been poised to start exporting fuel to at least other African countries.

But none of those could happen because of some lousy speculations.

Come to think of it, for about one year now you all have been buying fuel at N145 (from N87) yet no one died or complained. Yet the infastructure and transport system are yet to improve.

So, go ahead. Keep destroying the future with your speculations. It's been a Socialist Republic of Nigeria. No problems.

laudate:


You call it speculation? Oya, go ahead and implement it and let us know exactly you would handle the aftermath of your so-called total deregulation. People like Dangote did not call for total deregulation before building their own refinery. You that has not even worked in any refinery before, is calling for total deregulation...hehehe!

paschu:
I'm sure you have no idea how much incentives the govt./CBN has given to Dangote to build the monopoly. But wait until the station is built and let's see how he competes with importers in the face of subsidy WITHOUT any further incentives from the fedreal govt. .

laudate:


Please let us know the incentives that govt/CBN gave him.

And why would he not compete favourably with importers when his refinery is fully built & operational?

paschu:
http://www.premiumtimesng.com/news/top-news/196557-14-billion-refinery-cbn-assures-dangote-of-support-to-get-forex.html

http://newsrescue.com/the-truth-behind-dangotes-wealth-the-cabal-tokunbo-ban-and-impoverishing-nigerians/#axzz4Z32zFPHf

No need to speculate on this. We can draw conclusion from dangote himself regarding his much touted local tomatoe paste production plant. Here's the link.

http://nairametrics.com/why-its-cheaper-to-import-tomato-despite-forex-ban-dangote/

So who says the same should not repeat itself in the fuel sector? Or do you think other Nigerian businesses will all sit down and watch one company monopolize a whole industry?

Dangote Clarifies Forex Allocation to Refinery, Fertilizer Plant By Crusoe Osagie and Ejiofor Alike

Africa’s richest man and President of Dangote Group, Aliko Dangote, has clarified that his refinery, petrochemical and fertilizer plant did not collect as much foreign exchange from the Central Bank of Nigeria (CBN) as some people have speculated, stressing that his company raised a substantial part of the forex being used in the execution of the multi-billion dollar project.

This is coming as Vice-President Yemi Osinbajo has described the refinery, fertilizer, petrochemical and gas pipeline project being executed by Dangote Group at a cost of $17 billion, as the largest single project in the world.

Speaking on Saturday during an inspection tour of the ongoing project by Osinbajo in the Lagos Free Trade Zone at the Ibeju-Lekki area of Lagos, Dangote said the company sourced the $100 million used in acquiring the land from the Lagos State Government and raised another $300 million capital to start the project without any assistance. http://www.thisdaylive.com/index.php/2016/06/27/dangote-clarifies-forex-allocation-to-refinery-fertilizer-plant/

laudate:


Guy, did you even read those articles? CBN promised him forex, but there is nothing in that report to show that Dangote took the entire forex allocation of 14 billion USD from CBN to build his refinery. Please read this article below:



Dangote borrowed only $173 million from banks out of the 12 billion USD needed for the project, to pay interest rates on their previous loan since 2014. Did CBN dash him the money? No!!

And your likening tomato paste to oil or refined petroleum products, is laughable. Petroleum product sales are listed & governed by Platt, while crude oil output and price, is by OPEC members. Tomato paste is a totally different kettle of fish.

paschu:
It's clear you do not want to be objective.

"L\aughing" at the tomatoes production link shows that you have no idea what free matket is. And you certainly ignored the fact that there is a MATERIAL reason NNPC was working, yet NONE of its refineries could work in full capacity since all these years.

And, are you trying to suggest that his claim of not receiving "ALL" has translated to meaning the same thing as "he received NONE"?

See, even if it is only $1billion forex subsidy he got (and I'm convinced he got much more) do you realize how powerful that is as an incentive?

Do you know how much unfair advantage it gave him over other businesses (including fuel importers) that required the same forex at CBN rate but could not get it (not even at the comnercial bank rate) ?

Fact is the dangote empire is traditionally known to ride on exclusive govt. incentives. And it's now getting bigger.

But that's my point all the while. All investors (not just dangote) need attractive incentives to invest in unattractive sectors of the economy. That's how it works, but socialists don't have a clue.

laudate:


Nah, the lack of objectivity is oozing from your pores and dripping from your words. I still can't get over the way you compared tomato paste market, to the petroleum products international oil market.

Do you even know what the Platt Oilgram is? Please google it. As for getting unfair commercial advantage, Dangote has stated that the bulk of the money for his refinery was raised overseas. Only 10% or less (i.e. about $173 million), came from the local banking sector, and he had to pay for it. Yet, you are still here chanting unfair advantage. Did CBN dash him the money or did they sell that small amount of forex to him at a lower rate? No!

As for incentives, most top companies also got similar incentives from govt, including those in the telecoms and power sector. What do they have to show for it?

The fuel importers, just want to continue importing and making subsidy claims, because it is a cheap way to earn money without doing much productive work. We have seen how some of them were jailed recently for making false subsidy claims.

You can call your fellow socialists to debate this, but my own view is that those calling for total deregulation need to put something in place to cushion the aftermath of any systemic shock that arises from their total deregulation. Or else, they would just be committing financial & economic hara kiri.

dre11:








http://thenationonlineng.net/petrol-subsidy-back-fg-dilemma-keep-paying-difference/

paschu:
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